Vitalik Buterin has suggested a notable 33% rise in Ethereum's gas limit to improve overall network performance.

Co-founder of Ethereum (ETH) — Vitalik Buterin During an ask-me-anything session on Reddit, Buterin discussed the need for this adjustment, mentioning that the gas limit has been stagnant for nearly three years, marking the longest period without an adjustment in the protocol's history. Ethereum Foundation’s Buterin also pointed out that this proposed change would lead to a new cap of approximately 40 million. Given the existing gas limit of 30 million, this translates into a significant 33% increase.

The gas limit is essentially the maximum amount of gas that can be used to conduct transactions or run smart contracts within each block. Gas refers to the fees required to process a transaction or execute a contract on the blockchain.

The Ethereum A defined gas limit is crucial to prevent blocks from becoming overly large, which could negatively impact the network's efficiency and synchronization. Validators have the flexibility to adjust the gas limit dynamically within set boundaries while producing new blocks.

Increasing the gas limit allows for more transactions to be included in every block, theoretically boosting the network's throughput and capacity. However, it's essential to note that this also raises demands on hardware and could introduce risks such as network spam and malicious attacks.

Currently, average gas prices, which indicate transaction costs on the network, hover around 35 gwei or $1.89. These prices have been on the rise since the beginning of 2024, especially for complex smart contract interactions.

In May 2023, network gas fees peaked at 150 gwei due to a surge in activity related to inscriptions. It's worth noting that a gwei is a unit of Ethereum, representing one-billionth of an ETH. Ethereum Recently, the price of Ethereum surprised many by showing significant strength, climbing from $2,444 on January 10 to a high of $2,644.45, reflecting a more than 10% increase in just 24 hours, according to reports.

Ethereum Reaches New Heights

Analysts speculate that this price jump may be connected to market preparations for the upcoming approval of a spot Ethereum ETF in May 2024, which was recently green-lighted. This advancement is anticipated to give U.S. professional investors indirect access to Ethereum.

By proposing an increase in Ethereum's gas limit, Vitalik Buterin is attempting to tackle the issue of stagnation and potential scalability problems, all while being mindful of the associated risks. OKX market data.

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